From SENS
Altron has released its finalised 28 February 2014 year end financial results. During the year, Altron achieved good revenue growth of 12% to R27.8 billion, as well as a very pleasing 49% increase in normalised headline earnings per share (normalised HEPS) to 206 cents. The share price is trading down on the day (12h30), Altron currently holds a market cap of R2.63bn.
A number of significant projects were initiated during the period under review, among them, the establishment of Altron TMT, the restructuring of Powertech System Integrators, the refinancing of the group’s debt and the rebranding of Altron.
As previously reported, Altron, through its wholly owned subsidiary Altron Finance Proprietary Limited, acquired the Altech non-controlling shareholders’ shares in Altech effective 1 August 2013. This brought Altron’s shareholding in Altech to 100% and enabled the integration of Altech and Bytes, through the formation of Altron TMT. Altech showed a good recovery with most of its operations performing satisfactorily and Altech Netstar and Altech UEC South Africa performing particularly well. Bytes continued its strong performance with Bytes’ UK operations, Bytes Systems Integration and Bytes Managed Solutions
contributing significantly to the overall results. Powertech made a pleasing recovery, particularly in its power cables business, albeit off a low base. Overall, sales into the public sector and into African countries have increased significantly.
Altron’s revenue from continued operations increased by a 14% to R27.8 billion from R24.5 billion in the prior period, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 8% from R1.6 billion to R1.8 billion.
Normalised EBITDA amounted to R1.9 billion, up nearly 12%, which excludes the effect of once-off, non-operational costs referred to above, being R45 million in respect of the repatriation of an East African loan and R39 million in respect of various restructuring costs. Normalised EBITDA margin was 6.7% compared to the prior year’s 6.9%.
Reduced capital items, as well as a lower depreciation charge, related to the disposal of Altech’s West African operation in the prior year, resulted in a profit of R1.3 billion from operating activities, 16% higher than last year’s R1.1 billion. Net finance costs have increased from R78 million to R260 million as average borrowings have increased significantly due to the additional borrowings taken on to acquire the Altech non-controlling interest as well as an increased operational funding requirement to finance higher working capital and the continued investment into the Altech Autopage subscriber base.
After taking into account the discontinued operations, the profit for the year improved from a loss of R942 million in the prior year to a profit of R775 million.
HEPS is up 42% at 188 cents while normalised HEPS increased 49% to 206 cents. Return on equity was 15.2%.
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